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March 2, 2020
First, the good news: a big package of energy legislation with some important clean-energy provisions is on its way to be considered by the full U.S. Senate this week, capping months of public hearings and deliberations that revealed broad bipartisan support for energy efficiency. If enacted, the American Energy Innovation Act (AEIA) (S. 2657) will be the first major energy policy bill since the Energy Independence and Security Act (EISA) of 2007. The American Energy Innovation Act includes several pieces of previously proposed legislation, including most of S. 2137, the Energy Savings and Industrial Competitiveness Act of 2019, which is known by the namesake of its sponsors, Sens. Rob Portman (R-OH) and Jeanne Shaheen (D-NH) ("Portman-Shaheen").
The bad news? There’s a gaping hole in the legislation where two building-code provisions should be. Sections 101 and 102 of Portman-Shaheen (‘Greater energy efficiency in building codes” and “Cost-effective codes implementation for efficiency and resilience”) were removed at the request of a special-interest group, even though they had passed the Senate Committee on Energy and Natural Resources early this year with bipartisan support, and even though the legislation ensures that code adoption remains voluntary and at the discretion of state, tribal, and local governments.
In its most recent analysis of Portman-Shaheen (and its identical House counterpart, H.R. 3962, introduced by Reps. Peter Welch (D-VT) and David McKinley (R-WV)), the American Council for an Energy Efficient Economy (ACEEE) reports that energy efficiency improvements resulting from Sections 101 and 102 would have “by far the largest impact on energy efficiency,” saving Americans more than $41 billion through 2050 and reducing carbon emissions by 1.1 billion metric tons. This is important because residential and commercial buildings account for nearly 40 percent of total U.S. energy consumption and related greenhouse gas emissions.
And yet, the codes sections in the American Energy Innovation Act disappeared after the national home-builders association mobilized its members to contact their senators and oppose the provisions by claiming that codes for energy-efficient construction cost them money and therefore make new homes unaffordable for most people.
The irony – the tragedy really – is that energy efficiency makes housing more affordable, month after month, by reducing energy bills that are typically a household’s largest expense after the mortgage payment. Energy code opponents like the National Association of Home Builders (NAHB) argue that purchase price is more important than monthly energy costs. In fact, when months and years of utility bills, maintenance, and repair costs are added on top of the initial “sticker price”, it becomes clear that cost of ownership is the metric that matters.
In addition to monthly energy savings, houses and buildings built to the latest model codes are safer and more comfortable than their outdated counterparts. Energy-efficient construction reduces or eliminates drafts, and the construction techniques go hand in hand with specs to ensure healthy indoor air quality. Good construction also holds up better during extreme weather events. Rather than resisting codes that ensure well-performing, healthy homes that are affordable for more people, builders should be insisting that these features are appropriately recognized and valued by appraisers, inspectors, Realtors, bankers, and federal mortgage programs. Efficiency keeps on giving even as fancy finishes lose their appeal.
While new construction is a small percentage of the building stock, it is important not to construct low-efficiency buildings that will be in use for decades to come. Congress can help states and communities reduce emissions by providing them with adequate resources to adopt and enforce up-to-date model building energy codes, help builders with compliance, promote above-code standards, and incentivize retrofits of existing buildings. The Portman-Shaheen code provisions would do this and thereby help states and local governments achieve their climate goals.
The provisions also recognize that model codes are the minimum of what is possible and provide resources to state and local governments to realize more ambitious energy efficiency and emission reduction goals, such as promoting net-zero energy (NZE) buildings. (The Department of Energy (DOE) defines an NZE building as one that “produces enough renewable energy to meet its own annual energy consumption, thereby reducing the use of nonrenewable energy in the building sector”). EESI considers a goal of net-zero (NZE) consumption in new buildings entirely feasible.
Energy efficiency is the foundation of a net-zero energy building, and NZE buildings are the foundation of a low-carbon economy. Other provisions of the Senate bill are designed to accelerate R&D and deployment of renewable energy, energy storage technologies, grid modernization (including microgrids), and other innovative technologies and solutions to climate change and the devastating effects we’re already facing. Along with federal building efficiency and many other emission reduction strategies, the combined effect of all of these carefully vetted, bipartisan provisions is a major climate change solution.
In testimony to the U.S. Senate, EESI Executive Director Daniel Bresette noted that “energy efficiency provides the easiest source of measurable emissions reductions. It is the secret weapon against climate change because we already have what we need to do. Every kilowatt and kilowatt-hour saved today will make future commitments easier to attain." Adding the missing Portman-Shaheen codes provisions would deliver meaningful emissions reductions and support the adoption of model building energy codes. And, therefore, the Senate should take this opportunity to do the right thing and make sure that the first energy legislation passed in more than 10 years addresses the energy efficiency of the building sector.
Author: Ellen Vaughan
Advancing science-based climate solutions
Top-Rated Climate Nonprofit – 4-Star Charity